Sunday, May 10, 2009

Saving Money at the Grocery Store By Using a Budget

By Alex Pastlin

Most shoppers understand that shopping from a grocery list will not only make the trip go faster, but will also save money. Shopping from a budget is just as, if not more, important. Yet, working from a budget can be puzzling. How do you know how much to budget? How do you know if you're spending too much?

When setting your budget, treat your grocery shopping as if it were any other bill, like your rent and car insurance. After all, food is a necessity and a vital part of your health. When doing your monthly financial planning, budget in your groceries and try not to use the attitude of "whatever I have left over after I pay the bills I'll spend on groceries." That "leftover money" sometimes gets eaten up in little daily expenses that we don't even think about and you might not end up with enough to grocery shop with.

So how much should you budget? That depends on the size of your family and your income. If you look at government standards, a family of 3 with no income would generally receive $389 per month in Food Stamps. That's not to say that every family with 3 people should expect to spend that much, or wouldn't go over, but it's a reasonable estimation.

Try looking at your grocery list in comparison to your budget. What items do you absolutely need? Make a list of those items that you generally buy on every trip. For your family, this might be milk and eggs. Figure in the cost of these items into your budget first, since you know you will be purchasing them.

Take a look at your list and try to figure out if there are items that you can buy less of. Are there items that you can purchase at another store, such as a discount store, where they might be cheaper? Is it cheaper to shop at your local farmer's market for produce? You don't always have to shop at the same store for every item on your list.

After you have set your monthly budget, if you determine that it is too high, try to cut it back by $50. If this seems to work and you notice a huge difference, try cutting it back again by 5% the next month.

If you try cutting back on your grocery bill and find that you can't live without all the items on your list, then look at other amounts that you spend and try cutting back there. Perhaps you stay in with popcorn and a rented movie one weekend, or you start taking your lunch to work several days per week. See if there is another area in your life that you can re-budget, without depriving yourself of the groceries you need.

In general, it is always cheaper to buy items that can be used more than once. Try buying for multiple meals instead of for one meal. A box of pasta can last through two or three meals, as can a bag of potatoes. Buying frozen dinners, while more convenient when it comes to time, is going to cost more money in the long run.

Paying with cash is also an excellent way of sticking to your budget. As soon as you get paid, withdraw your grocery budget and put the money into a separate envelope. Shop only from that envelope and tell yourself that you can't use your debit or credit card. Lock them in the trunk when you go into the store if you have to. This will keep you from over-spending.

All in all, remember that food is just as important of an expense as your rent, your utilities, and your childcare (if you have children). Treat it importantly and be wise in your budgeting so that you don't short yourself on having a healthy lifestyle. With a little forethought, grocery shopping on a budget does not have to be too hard.

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